Do you really know all you need to know about cloud-based contact center technology, or are you still a little foggy about this popular new trend? Understanding the benefits and challenges of a cloud-based (hosted) solution and knowing what is the best option for your business—cloud-based, site-premised or a combination of both—can keep vendors from “raining on your parade.”

According to DMG Consulting, cloud-based infrastructure is the fastest growing segment in the call center industry, predicted to almost double between 2013 and 2015. Its monthly payment model and reduced up-front costs make it especially appealing for small and medium-sized businesses. Change is coming, and the proof is in the numbers. By the end of:

  • 2013: 6 out of 10 contact centers had plans for cloud-based deployments
  • 2015: 18% of contact center seats will be delivered by cloud-based infrastructure. (Up from just 2.2% in 2008)
  • 2016: 50% of Global 1000 companies will have stored customer-sensitive data in the cloud

Frost and Sullivan previously forecast that by 2014, the majority of contact centers would move to the cloud; however, this happened much quicker than expected. Their latest forecast is that the North American cloud-based call center market is expected to grow to $2.1B in 2014.

The gap in functionality between site-premised and cloud-based systems continues to narrow, further driving hosted call center growth. Expect to see more consolidation in this space, and 18% of all call center seats being cloud-based by 2015.

The Shift to the Cloud

Moving the contact center to the cloud is making the biggest impact on and is becoming the most mainstream change to the contact center. There continues to be a huge shift in the market.

Gartner Market Projections:

  • Market growth of CPE contact center:
  • Market growth of cloud contact center: 19%

Reasons for the Shift

While cost reduction—keeping up with technology without writing a big check– continues to be a key objective, it is no longer the dominant driver. The primary strategy is to focus on your core business. Moving in-house resources to a cloud provider while retaining overall responsibility of what’s going on more cost-effectively enables that focus.

Primary Cloud-Based Contact Center Benefits

Contact centers have come to appreciate the wealth of other benefits that cloud-based solutions have to offer, for example:

  • Faster deployment: be up and running in a matter of weeks vs. months.
  • Increased flexibility and scalability: variable staffing needs can be met without buying work station licenses and the expense of other extra technology that at times won’t be used.
  • Continuous operation and disaster recovery: the cloud-based call center is never down. Operation and management of remote agents are not limited by geography. Real-time information is always available.
  • Ability to focus on the core business and the ease of incremental upgrades vs. the build-out of a larger IT infrastructure.
  • Improved customer service experience: some companies have trouble making that leap to see how the cloud can benefit them in this area of growing importance. Here are just a few ways the cloud can help:
    • No more outdated, cumbersome, IVR systems, or systems that are poorly implemented.
    • Incremental upgrades provide constant refreshes and access to new features. In the cloud world, major upgrades go away. “Never” be stuck with an outdated contact center system.
    • Most vendors that incorporate the cloud are better at multi-channel communications. Solely site-premised vendors are usually legacy companies. Newer companies are in the cloud space and have a better understanding of multi-channeling.
    • Greater adoption of customer self-service applications from the cloud.

Implementation strategies

There is no one-size-fits-all answer. Consider these options:

Remote control model:

    • Everything goes into that data center—customer interaction center/call center applications, audio operations/call recording, reporting data, storage of both voice and screen all happen via an internet connection.
    • All you need is agents with telephones.
  • Local Control Model (Hybrid)
    • You decide which applications are served up from the cloud
    • You record and store calls inside of your network &/or in the cloud
    • Media servers are at your site
    • You maintain existing relationships with telco providers

    If you are in the market for a contact center refresh, at least consider a move to the cloud. Put CaaS (Communication as a Service) side by side with an on-site system and compare the pros and cons. CaaS is becoming a solution of choice for mid-size to large, mission-critical contact centers that require a high level of trust, functionality and flexibility. Its popularity is also growing in contact centers with between 10 and 50 agents. Consider the benefits of putting your business, not your head, in the cloud.